What's the difference between HP and PCP car finance?

The main distinction between Hire Purchase and Personal Contract Purchase finance is that, with HP, you will own the vehicle at the end. Whereas in the case of PCP, you will have three options at the end of the agreement. Either you can return the car, settle the balance owing on the balloon payment to become the owner, or trade it in for a completely new car.

What are the interest rates for PCP cars on finance?

While you'll find that interest rates for PCP deals will differ between manufacturers, the bigger differences will be between new and used cars.Interest rates on car PCP finance packages will tend to be notable cheaper on new cars than they are on used vehicles.

What credit score do you need for PCP Finance?

To get approved for vehicle financing, it does help to have a good credit score, although not essential. Each lender will assign a different score to you, and your score is merely a representation of your credit history, which is what lenders care about. Affordability and debt level are other important considerations. If you are looking to buy a used car then simply complete our online form. Its just a soft search so it won't affect your credit rating, regardless of the outcome.

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What is PCP Car Finance?

PCP, or Personal Contract Purchase, is a type of loan and is one of the most popular car finance options available, mainly due to it being the most flexible.

PCP finance not only gives you an opportunity to have lower monthly payments compared to the likes of Hire Purchase (HP), but also allows you multiple options at the end of your agreement.

There are a few components to how a Personal Contract Purchase agreement works which may seem complicated; however, when broken down, it can be fairly easy to understand - so let’s get started…

Check Your Eligibility

Representative example: £19,121.93 repayable over 48 months. 48 monthly payments of £323.72. Deposit of £1,266.23. Amount of credit £17,855.70. Representative 11.36% APR. Fixed rate per annum 6.46%. Final Payment £8,511.57. Option to purchase fee £399.00. Cost of Credit £6,194.43. Total amount payable (Incl. Deposit, charge for credit, final payment & purchase fee) is £25,715.36.

What is PCP Car Finance?

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